I've had TELUS on the Bull List as a short-term valuation multiple expansion play. That was looking like it was working out wonderfully until a single report was released on the quality of the dividend. I think what amplifies things even further here is people do not want another BCE.
At this point in time, dividend coverage is relatively tight. However, it is not as tight as BCE. If TELUS can manage to trim CAPEX by 5-10% next year and boost FCF by mid single digits, the dividend should be covered.
Ultimately, a report like the one at the globe has a chance to drain sentiment out of a stock that was doing quite well on the year, which is frustrating.
I do not believe the dividend will be cut. However, I have to pay very close attention to the company's quarterly results over the next couple of quarters here. Some stability and confirmation the dividend is fine, the stock will probably head back to the mid $20's range. But, I expect it to trade range bound until we get some sort of confirmation.